MANILA – In a significant move aimed at easing the financial burden on its members, the Philippine Health Insurance Corporation (PhilHealth) announced its support on Monday for a reduction in the mandatory contribution rate.
During a media forum in Quezon City, PhilHealth President and CEO Emmanuel Ledesma Jr. revealed that the current contribution rate of five percent could be slashed to 3.25 percent. “That will be a huge help, I think, to the people… that will be around PHP40 billion a year,” Ledesma stated, emphasizing the substantial savings this would provide to Filipino citizens.
The Senate has already approved a bill to amend the Universal Health Care Act, a move that would facilitate this reduction for direct contributors to the state insurer. Ledesma expressed optimism about the bill’s passage, stating, “Once the bill is passed, we will definitely follow; we will be happy to move forward.”
Ledesma also highlighted that PhilHealth is currently in a strong financial position, allowing for an aggressive expansion of health benefit packages. This expansion aims to minimize out-of-pocket expenses for members, making healthcare more accessible. He attributed the availability of excess funds to several factors, including a decade-long freeze on benefit enhancements and fewer claims during the COVID-19 pandemic.
PhilHealth Senior Vice President Renato Limsiaco Jr. reported that as of October 5, the corporation’s investments had reached PHP512 billion, with over PHP9 billion already remitted to the national government. The payouts for various case packages had also soared to PHP120 billion as of September 30.
Addressing concerns about potential financial instability as benefit package rates increase, Ledesma reassured members that PhilHealth is prepared to adjust case rates and enhance benefits as needed. “We are committed to ensuring that our members receive the support they need without compromising the financial integrity of the organization,” he asserted.
As the nation awaits further developments on the proposed contribution reduction, the potential for significant savings and improved healthcare access remains a focal point for both PhilHealth and its members.
